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Too often business owners use their instincts relying on monthly financial statements and limited weekly reports, all of which are indicators of last known position. Keeping a business on track requires daily monitoring of Key Performance Indicators or KPIs (i.e., customer trends, inventory levels, productivity, cash, employment trends, equipment availability, etc.) and the need to look over the horizon.

KPIs are by definition measurable values that show how effectively a company is achieving key objectives. KPIs provide quantitative validation the business is performing to expectations.

A daily dashboard quantifies the current situation and trends as clear indicators of how the organization is tracking to key metrics which drive results. Business owners are then able to initiate corrective actions in real time mode with this information. More importantly a dashboard allows business owners to project the current position into the future. It is important to challenge whether current actions are keeping the organization on course to desired objectives. This pushes management to get their view over the horizon, to looking past a historical static position.

Change your view from retrospective, based on last month’s situation, and instead to looking over the horizon. Make certain the key metrics of your business are in front of you each morning.

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